Compare Prudential ISAs

Please be aware that Prudential ISAs are only available through their advisory service and are currently unavailable to retail customers.

Who are Prudential?

Founded in 1848 as a loan provider, Prudential are experts in finance and savings. They offer a range of financial investment products including ISAs and Pensions; however, these products are only accessible through their financial adviser service.

This means that you can’t open an ISA with Prudential unless you have received financial advice, in which case, your adviser will tell you which ISA and what other financial products are right for you.

What is an ISA?

ISA stands for Individual Savings Account, and they are savings accounts that are completely free from tax.

With a regular savings account, you are required to pay income tax and capital gains tax on your investments. Depending on how much you earn and your sources of income, you can lose a significant chunk of your savings to tax.

But if you invest in an ISA, your savings are completely immune to the following taxes:

1. Capital Gains Tax – up to 20% tax on the growth of your investments
2. Income tax on dividends – up to 38.1% tax on dividends for additional-rate tax payers
3. Income tax on interest – up to 45% tax on interest for additional-rate tax payers

What are the different types of ISA?

There are two main kinds of ISA accounts and each one has advantages and disadvantages.

The best ISA for you depends on your attitude to investment risk, how long you plan to be saving for, your investment knowledge and experience, and your personal preferences.

Cash ISAs

A Cash ISA is a tax-efficient savings account that offers fixed or variable interest rates on your cash savings.

Cash ISAs cannot go down in value as they don’t invest in the stock market, so you will always get back at least what you put in.

However, interest rates are currently very low so for long term investments you may be missing out on greater potential returns compared to a Stocks and Shares ISA.

Stocks and Shares ISAs

Stocks and Shares ISAs allow you to invest in the stock market for greater return potential. However, they also come at a higher risk, as your investment can both fall and rise in value.

Stocks and Shares ISAs allow you to invest in shares, funds, investment trusts, ETFs, ready-made portfolios and many more investment vehicles.

You benefit from the growth of your investments as well as the dividends they pay out.

Do ISA accounts cost money?

Cash ISA Charges

If you invest in a Cash ISA then you usually don’t pay any initial or ongoing charges for your account.

However, if you have a fixed interest rate product then you might be charged for withdrawing or transferring your Cash ISA before the end of your term.

Stocks and Shares ISA Charges

Stocks and Shares ISA providers levy an annual management charge against your portfolio in the form of a fixed fee or a percentage of your total ISA value.

They also charge dealing fees for buying and selling certain assets, and sometimes charge other ad hoc administration fees, such as for closing your account or transferring to another provider.

How do I open an ISA?

The easiest way to open an ISA account is online, via your provider’s website. However, you can also open ISA accounts over the phone or by post with an application form and a cheque.

To open an account, you’ll need to make a payment, either via a debit card lump sum or by setting up a regular Direct Debit.

Who can open an ISA?

To open an ISA, you must be:

• 16 or over for a Cash ISA
• 18 or over for a Stocks and Shares ISA
• A resident in the UK

You cannot open a joint ISA, as they are for individuals only.

FAQs

How much money can I add to an ISA?

You can contribute up to £20,000 to ISAs in the current tax year.

Can I withdraw from an ISA?

You can withdraw money from an ISA at any time.

You may be charged for withdrawing from a fixed-rate Cash ISA before the end of your fixed term.

For a Stocks and Shares ISA, you’ll need to sell your investments first which can take up to a week.

How do I withdraw money from my ISA?

The easiest way to withdraw from an ISA is online via your provider’s ISA platform. However, you can also withdraw by giving the instruction in writing or over the telephone.

Can I lose money in an ISA?

If you invest in a Stocks and Shares ISA, your investments can go down as well as up so you may get back less than you invest.

If you invest in a Cash ISA, you are guaranteed to get back at least what you originally invest.

Are ISAs safe?

ISAs are authorised and regulated by the Financial Conduct Authority (FCA).

Cash and Stocks and Shares ISA providers are covered by the Financial Services Compensation Scheme (FSCS), which means they cover you for up to £85,000 if your provider goes into liquidation.

Remember, the FSCS does not cover your underlying shares in a Stocks and Shares ISA, so if these go down in value then your ISA will too.

Can I transfer my ISA?

You can transfer Cash ISAs and Stocks and Shares ISAs to other ISAs if you want to. You can do this by completing an ISA transfer form with your new provider.

Are ISAs a good idea?

ISAs are a tax-efficient way to invest, either in Cash products or directly in the stock market.

Whether ISAs are right for you depends on your circumstances and preferences, but ISAs are safe and tax-efficient savings accounts.